Exhibit 99.2
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 |
Consolidated data (in millions, except per share) | | | | | | | | |
| Diluted net earnings (loss) per share | $ | 0.11 |
| $ | 0.03 |
| $ | — |
| $ | 0.28 |
| $ | 0.65 |
| $ | (1.23 | ) | $ | 0.11 |
| $ | 0.18 |
|
Notable items impact on earnings per share(a) | (0.30 | ) | (0.23 | ) | (0.04 | ) | (0.01 | ) | 0.22 |
| (1.57 | ) | (0.09 | ) | (0.22 | ) |
Adjusted diluted net earnings per share(a) | $ | 0.41 |
| $ | 0.26 |
| $ | 0.04 |
| $ | 0.29 |
| $ | 0.43 |
| $ | 0.34 |
| $ | 0.20 |
| $ | 0.40 |
|
| Diluted weighted average # of shares outstanding | 351.5 |
| 351.6 |
| 350.5 |
| 352.0 |
| 352.2 |
| 351.0 |
| 384.1 |
| 387.2 |
|
| | | | | | | | | |
| Total Net Sales | $ | 1,952 |
| $ | 1,862 |
| $ | 1,578 |
| $ | 1,755 |
| $ | 1,985 |
| $ | 2,092 |
| $ | 1,934 |
| $ | 2,205 |
|
| Cost of goods sold | 1,739 |
| 1,656 |
| 1,449 |
| 1,562 |
| 1,744 |
| 1,812 |
| 1,691 |
| 1,910 |
|
| Gross Margin | $ | 213 |
| $ | 206 |
| $ | 130 |
| $ | 192 |
| $ | 241 |
| $ | 280 |
| $ | 243 |
| $ | 295 |
|
| SG&A | 67 |
| 75 |
| 81 |
| 71 |
| 66 |
| 83 |
| 94 |
| 79 |
|
| Other operating expense | 76 |
| 57 |
| 19 |
| 27 |
| (39 | ) | 70 |
| 68 |
| 20 |
|
| Operating earnings | $ | 70 |
| $ | 74 |
| $ | 30 |
| $ | 95 |
| $ | 214 |
| $ | 127 |
| $ | 81 |
| $ | 196 |
|
| Interest expense, net | (26 | ) | (27 | ) | (26 | ) | (36 | ) | (36 | ) | (40 | ) | (49 | ) | (45 | ) |
| Consolidated foreign currency gain/(loss) | (33 | ) | (30 | ) | 9 |
| 9 |
| 59 |
| (27 | ) | (32 | ) | (79 | ) |
| Earnings from consolidated companies before income taxes | 12 |
| 12 |
| 9 |
| 69 |
| 237 |
| 59 |
| (7 | ) | 70 |
|
| (Benefit from) provision for income taxes | (30 | ) | (5 | ) | 10 |
| (23 | ) | 18 |
| 490 |
| (50 | ) | 4 |
|
| Earnings from consolidated companies | $ | 42 |
| $ | 17 |
| $ | (1 | ) | $ | 91 |
| $ | 220 |
| $ | (431 | ) | $ | 43 |
| $ | 66 |
|
| Equity in net earnings (loss) of nonconsolidated companies | (2 | ) | (3 | ) | — |
| 6 |
| 10 |
| 1 |
| (3 | ) | 2 |
|
| Less: Net earnings (loss) attributable to noncontrolling interests | 2 |
| 3 |
| — |
| — |
| 2 |
| 1 |
| (2 | ) | — |
|
| Net earnings attributable to Mosaic | $ | 39 |
| $ | 12 |
| $ | (1 | ) | $ | 97 |
| $ | 228 |
| $ | (431 | ) | $ | 42 |
| $ | 68 |
|
| After tax Notable items included in earnings | $ | (105 | ) | $ | (80 | ) | $ | (11 | ) | $ | (5 | ) | $ | 79 |
| $ | (550 | ) | $ | (35 | ) | $ | (86 | ) |
| | | | | | | | | |
| Gross Margin Rate | 11 | % | 11 | % | 8 | % | 11 | % | 12 | % | 13 | % | 13 | % | 13 | % |
| | | | | | | | | |
| Effective Tax Rate (including discrete tax) | (245 | )% | (47 | )% | 112 | % | (33 | )% | 7 | % | 828 | % | 714 | % | 5 | % |
| Discrete Tax benefit (expense) | $ | 2 |
| $ | (7 | ) | $ | (9 | ) | $ | 16 |
| $ | 5 |
| $ | (463 | ) | $ | 48 |
| $ | 13 |
|
| | | | | | | | | |
| Consolidated Depreciation, Depletion and Amortization | $ | 173 |
| $ | 165 |
| $ | 159 |
| $ | 166 |
| $ | 169 |
| $ | 172 |
| $ | 217 |
| $ | 217 |
|
Consolidated EBITDA(b) | $ | 208 |
| $ | 199 |
| $ | 193 |
| $ | 277 |
| $ | 451 |
| $ | 271 |
| $ | 257 |
| $ | 333 |
|
| Notable items included in Consolidated EBITDA | $ | (104 | ) | $ | (78 | ) | $ | (1 | ) | $ | (12 | ) | $ | 93 |
| $ | (95 | ) | $ | (115 | ) | $ | (128 | ) |
| Adjusted EBITDA | $ | 312 |
| $ | 277 |
| $ | 194 |
| $ | 289 |
| $ | 358 |
| $ | 366 |
| $ | 372 |
| $ | 461 |
|
| | | | | | | | | |
| Net cash provided by operating activities | $ | 90 |
| $ | 323 |
| $ | 146 |
| $ | 243 |
| $ | 136 |
| $ | 411 |
| $ | (71 | ) | $ | 807 |
|
| Cash paid for interest (net of amount capitalized) | 3 |
| 58 |
| 8 |
| 67 |
| 24 |
| 57 |
| 11 |
| 78 |
|
| Cash paid for income taxes (net of refunds) | (50 | ) | (41 | ) | — |
| (9 | ) | (8 | ) | (53 | ) | 13 |
| 14 |
|
| Net cash used in investing activities | $ | (978 | ) | $ | (264 | ) | $ | (245 | ) | $ | (177 | ) | $ | (221 | ) | $ | (25 | ) | $ | (1,220 | ) | $ | (197 | ) |
| Capital expenditures | (196 | ) | (209 | ) | (224 | ) | (169 | ) | (198 | ) | (230 | ) | (223 | ) | (201 | ) |
| Net cash (used in) provided by financing activities | $ | (112 | ) | $ | (255 | ) | $ | 102 |
| $ | (85 | ) | $ | 94 |
| $ | 1,090 |
| $ | (213 | ) | $ | (170 | ) |
| Cash dividends paid | (96 | ) | (96 | ) | (96 | ) | (53 | ) | (53 | ) | (9 | ) | (10 | ) | (10 | ) |
| Effect of exchange rate changes on cash | $ | (8 | ) | $ | (12 | ) | $ | 3 |
| $ | 2 |
| $ | 18 |
| $ | (8 | ) | $ | 13 |
| $ | (65 | ) |
| Net change in cash and cash equivalents | $ | (1,007 | ) | $ | (208 | ) | $ | 6 |
| $ | (18 | ) | $ | 27 |
| $ | 1,468 |
| $ | (1,491 | ) | $ | 375 |
|
| | | | | | | | | |
| Short-term debt | $ | 54 |
| $ | — |
| $ | 124 |
| $ | 65 |
| $ | 59 |
| $ | 6 |
| $ | 72 |
| $ | 20 |
|
| Long-term debt (including current portion) | 3,823 |
| 3,818 |
| 3,828 |
| 3,843 |
| 3,856 |
| 5,222 |
| 5,074 |
| 4,998 |
|
| Cash & cash equivalents | 654 |
| 673 |
| 675 |
| 661 |
| 686 |
| 2,154 |
| 659 |
| 1,035 |
|
| Net debt | $ | 3,223 |
| $ | 3,145 |
| $ | 3,276 |
| $ | 3,247 |
| $ | 3,229 |
| $ | 3,074 |
| $ | 4,487 |
| $ | 3,983 |
|
| | | | | | | | | |
Segment Contributions (in millions) | | | | | | | | |
| Potash | $ | 428 |
| $ | 407 |
| $ | 414 |
| $ | 468 |
| $ | 474 |
| $ | 496 |
| $ | 404 |
| $ | 569 |
|
| Phosphates | 930 |
| 896 |
| 839 |
| 975 |
| 779 |
| 997 |
| 866 |
| 1,053 |
|
| Mosaic Fertilizantes | 740 |
| 521 |
| 427 |
| 467 |
| 806 |
| 520 |
| 665 |
| 713 |
|
Corporate and Other(c) | (146 | ) | 38 |
| (102 | ) | (155 | ) | (74 | ) | 79 |
| (1 | ) | (130 | ) |
| Total net sales | $ | 1,952 |
| $ | 1,862 |
| $ | 1,578 |
| $ | 1,755 |
| $ | 1,985 |
| $ | 2,092 |
| $ | 1,934 |
| $ | 2,205 |
|
| | | | | | | | | |
| Potash | $ | 7 |
| $ | 28 |
| $ | 36 |
| $ | 85 |
| $ | 77 |
| $ | 83 |
| $ | 74 |
| $ | 108 |
|
| Phosphates | 6 |
| 12 |
| 17 |
| 30 |
| 88 |
| 57 |
| 60 |
| 129 |
|
| Mosaic Fertilizantes | 50 |
| 39 |
| 11 |
| 21 |
| 46 |
| 10 |
| 9 |
| 14 |
|
Corporate and Other(c) | 7 |
| (5 | ) | (34 | ) | (42 | ) | 3 |
| (23 | ) | (62 | ) | (55 | ) |
| Consolidated operating earnings | $ | 70 |
| $ | 74 |
| $ | 30 |
| $ | 95 |
| $ | 214 |
| $ | 127 |
| $ | 81 |
| $ | 196 |
|
| | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Potash(d) | 2,208 |
| 1,984 |
| 1,973 |
| 2,191 |
| 2,219 |
| 2,217 |
| 1,690 |
| 2,364 |
|
Phosphates(d) | 2,521 |
| 2,504 |
| 2,272 |
| 2,582 |
| 2,110 |
| 2,496 |
| 1,945 |
| 2,302 |
|
| Mosaic Fertilizantes | 1,922 |
| 1,446 |
| 646 |
| 1,300 |
| 2,178 |
| 1,399 |
| 1,584 |
| 1,846 |
|
| Corporate and Other | 290 |
| 463 |
| 689 |
| 319 |
| 333 |
| 497 |
| 266 |
| 348 |
|
Total finished product tonnes sold ('000 tonnes) | 6,941 |
| 6,397 |
| 5,580 |
| 6,392 |
| 6,840 |
| 6,609 |
| 5,485 |
| 6,860 |
|
Percent specialty(p) | 18 | % | 19 | % | 19 | % | 22 | % | 21 | % | 18 | % | 22 | % | 25 | % |
The Mosaic Company - Phosphates Segment
Selected Calendar Quarter Financial Information
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 |
Net Sales and Gross Margin (in millions, except per tonne) | | | | | | | | |
| Segment income statement | | | | | | | | |
| Net Sales | $ | 930 |
| $ | 896 |
| $ | 839 |
| $ | 975 |
| $ | 779 |
| $ | 997 |
| $ | 866 |
| $ | 1,053 |
|
| Cost of Goods Sold | 829 |
| 812 |
| 783 |
| 898 |
| 712 |
| 864 |
| 769 |
| 899 |
|
| Gross Margin | $ | 101 |
| $ | 84 |
| $ | 56 |
| $ | 76 |
| $ | 67 |
| $ | 133 |
| $ | 97 |
| $ | 154 |
|
| Notable Items Included in Gross Margin | — |
| 9 |
| — |
| — |
| — |
| — |
| (15 | ) | (6 | ) |
| Adjusted Gross Margin (excluding notables) | $ | 101 |
| $ | 75 |
| $ | 56 |
| $ | 76 |
| $ | 67 |
| $ | 133 |
| $ | 112 |
| $ | 160 |
|
| | | | | | | | | |
| SG&A | 30 |
| 30 |
| 30 |
| 29 |
| 25 |
| 29 |
| 31 |
| 24 |
|
| Other operating (income) expense | 65 |
| 42 |
| 9 |
| 18 |
| (47 | ) | 47 |
| 6 |
| 1 |
|
| | | | | | | | | |
| Operating Earnings | $ | 6 |
| $ | 12 |
| $ | 17 |
| $ | 30 |
| $ | 88 |
| $ | 57 |
| $ | 60 |
| $ | 129 |
|
| Plus: Depreciation, Depletion and Amortization | 84 |
| 78 |
| 80 |
| 83 |
| 86 |
| 89 |
| 99 |
| 102 |
|
| Plus: Foreign Exchange Gain (Loss) | 2 |
| 4 |
| (2 | ) | (4 | ) | (6 | ) | 1 |
| 4 |
| 1 |
|
| Plus: Other Income (Expense) | — |
| (10 | ) | (2 | ) | 2 |
| 1 |
| (1 | ) | (5 | ) | (3 | ) |
| Plus: Equity in net earnings (loss) of nonconsolidated companies | (2 | ) | (3 | ) | — |
| 5 |
| 10 |
| 1 |
| (4 | ) | 1 |
|
| Less: Earnings (loss) from Consolidated Noncontrolling Interests | 2 |
| 4 |
| 2 |
| (2 | ) | — |
| 2 |
| (1 | ) | 1 |
|
EBITDA(g) | $ | 88 |
| $ | 77 |
| $ | 91 |
| $ | 118 |
| $ | 179 |
| $ | 144 |
| $ | 155 |
| $ | 229 |
|
| Notable Items Included in EBITDA | $ | (60 | ) | $ | (33 | ) | $ | (5 | ) | $ | (23 | ) | $ | 43 |
| $ | (38 | ) | $ | (16 | ) | $ | 1 |
|
| Adjusted EBITDA (excluding notables) | $ | 148 |
| $ | 110 |
| $ | 96 |
| $ | 141 |
| $ | 136 |
| $ | 182 |
| $ | 171 |
| $ | 228 |
|
| | | | | | | | | |
| Capital expenditures | $ | 89 |
| $ | 89 |
| $ | 103 |
| $ | 101 |
| $ | 87 |
| $ | 110 |
| $ | 100 |
| $ | 92 |
|
| Gross Margin $ / tonne of finished product | $ | 40 |
| $ | 34 |
| $ | 25 |
| $ | 29 |
| $ | 32 |
| $ | 53 |
| $ | 49 |
| $ | 67 |
|
| Adjusted Gross Margin $ / tonne of finished product | $ | 40 |
| $ | 30 |
| $ | 25 |
| $ | 29 |
| $ | 32 |
| $ | 53 |
| $ | 57 |
| $ | 70 |
|
| Gross margin as a percent of sales | 11 | % | 9 | % | 7 | % | 8 | % | 9 | % | 13 | % | 11 | % | 15 | % |
| | | | | | | | | |
| Freight included in finished goods (in millions) | $ | 86 |
| $ | 91 |
| $ | 79 |
| $ | 103 |
| $ | 78 |
| $ | 107 |
| $ | 77 |
| $ | 100 |
|
| | | | | | | | | |
| Operating Data | | | | | | | | |
Sales volumes ('000 tonnes)(d) | | | | | | | | |
| DAP/MAP | 1,715 |
| 1,763 |
| 1,486 |
| 1,706 |
| 1,483 |
| 1,663 |
| 1,295 |
| 1,332 |
|
Specialty(k) | 806 |
| 741 |
| 786 |
| 876 |
| 627 |
| 833 |
| 650 |
| 970 |
|
Total Finished Product(d) | 2,521 |
| 2,504 |
| 2,272 |
| 2,582 |
| 2,110 |
| 2,496 |
| 1,945 |
| 2,302 |
|
| | | | | | | | | |
Average finished product selling price (destination)(e) | $ | 369 |
| $ | 358 |
| $ | 369 |
| $ | 377 |
| $ | 369 |
| $ | 399 |
| $ | 431 |
| $ | 451 |
|
| | | | | | | | | |
Production Volumes ('000 tonnes) | | | | | | | | |
Total tonnes produced(h) | 2,461 |
| 2,463 |
| 2,303 |
| 2,461 |
| 2,339 |
| 2,322 |
| 2,045 |
| 2,081 |
|
Operating Rate(n) | 84 | % | 84 | % | 79 | % | 84 | % | 80 | % | 79 | % | 84 | % | 86 | % |
| | | | | | | | | |
Realized costs ($/tonne) | | | | | | | | |
Ammonia (tonne)(i) | $ | 287 |
| $ | 259 |
| $ | 285 |
| $ | 373 |
| $ | 283 |
| $ | 298 |
| $ | 344 |
| $ | 325 |
|
Sulfur (long ton)(j) | $ | 93 |
| $ | 87 |
| $ | 87 |
| $ | 90 |
| $ | 88 |
| $ | 97 |
| $ | 128 |
| $ | 139 |
|
| Blended rock | $ | 60 |
| $ | 58 |
| $ | 59 |
| $ | 58 |
| $ | 63 |
| $ | 55 |
| $ | 55 |
| $ | 59 |
|
| | | | | | | | | |
| Cash conversion costs / finished product tonne | $ | 62 |
| $ | 65 |
| $ | 79 |
| $ | 67 |
| $ | 68 |
| $ | 70 |
| $ | 68 |
| $ | 64 |
|
| Cash rock costs consumed / tonne | $ | 42 |
| $ | 40 |
| $ | 40 |
| $ | 40 |
| $ | 40 |
| $ | 35 |
| $ | 35 |
| $ | 36 |
|
| | | | | | | | | |
| Phosphate Rock | | | | | | | | |
Sales Volumes ('000 tonnes)(m) | | | | | | | 360 |
| 209 |
|
Average rock selling price (destination)(o) | | | | | | | $ | 79 |
| $ | 72 |
|
| Gross margin $ / rock tonne | | | | | | | $ | 4 |
| $ | (3 | ) |
| Freight included in rock (in millions) | | | | | | | $ | 8 |
| $ | 4 |
|
The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 |
Net Sales and Gross Margin (in millions, except per tonne) | | | | | | | | |
| Segment income statement | | | | | | | | |
| Net Sales | $ | 428 |
| $ | 407 |
| $ | 414 |
| $ | 468 |
| $ | 474 |
| $ | 496 |
| $ | 404 |
| $ | 569 |
|
| Cost of Goods Sold | 388 |
| 341 |
| 345 |
| 358 |
| 376 |
| 383 |
| 301 |
| 437 |
|
| Gross Margin | $ | 40 |
| $ | 66 |
| $ | 69 |
| $ | 110 |
| $ | 99 |
| $ | 114 |
| $ | 103 |
| $ | 132 |
|
| Notable Items Included in Gross Margin | — |
| — |
| (3 | ) | — |
| (10 | ) | — |
| (5 | ) | (4 | ) |
| Adjusted Gross Margin (excluding notables) | $ | 40 |
| $ | 66 |
| $ | 72 |
| $ | 110 |
| $ | 109 |
| $ | 114 |
| $ | 108 |
| $ | 136 |
|
| | | | | | | | | |
| SG&A | 27 |
| 30 |
| 28 |
| 23 |
| 21 |
| 24 |
| 26 |
| 22 |
|
| Other operating (income) expense | 6 |
| 8 |
| 6 |
| 2 |
| 1 |
| 7 |
| 3 |
| 2 |
|
| | | | | | | | | |
| Operating Earnings | $ | 7 |
| $ | 28 |
| $ | 36 |
| $ | 85 |
| $ | 77 |
| $ | 83 |
| $ | 74 |
| $ | 108 |
|
| Plus: Depreciation, Depletion and Amortization | 77 |
| 77 |
| 70 |
| 73 |
| 73 |
| 72 |
| 76 |
| 73 |
|
| Plus: Foreign Exchange Gain (Loss) | (24 | ) | (27 | ) | 8 |
| 30 |
| 55 |
| (13 | ) | (30 | ) | (23 | ) |
| Plus: Other Income (Expense) | 78 |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
|
EBITDA(g) | $ | 138 |
| $ | 78 |
| $ | 114 |
| $ | 188 |
| $ | 205 |
| $ | 142 |
| $ | 120 |
| $ | 158 |
|
| Notable Items Included in EBITDA | $ | (26 | ) | $ | (27 | ) | $ | 5 |
| $ | 30 |
| $ | 45 |
| $ | (13 | ) | $ | (35 | ) | $ | (27 | ) |
| Adjusted EBITDA (excluding notables) | $ | 164 |
| $ | 105 |
| $ | 109 |
| $ | 158 |
| $ | 160 |
| $ | 155 |
| $ | 155 |
| $ | 185 |
|
| | | | | | | | | |
| Capital expenditures | $ | 99 |
| $ | 107 |
| $ | 106 |
| $ | 61 |
| $ | 102 |
| $ | 103 |
| $ | 104 |
| $ | 80 |
|
| Gross Margin $ / tonne of finished product | $ | 18 |
| $ | 33 |
| $ | 35 |
| $ | 50 |
| $ | 44 |
| $ | 51 |
| $ | 61 |
| $ | 56 |
|
| Adjusted Gross Margin $ / tonne of finished product | $ | 18 |
| $ | 33 |
| $ | 37 |
| $ | 50 |
| $ | 49 |
| $ | 51 |
| $ | 64 |
| $ | 58 |
|
| Gross margin as a percent of sales | 9 | % | 16 | % | 17 | % | 23 | % | 21 | % | 23 | % | 25 | % | 23 | % |
| | | | | | | | | |
| Supplemental Cost Information | | | | | | | | |
| Canadian resource taxes | $ | 14 |
| $ | 31 |
| $ | 23 |
| $ | 33 |
| $ | (5 | ) | $ | 19 |
| $ | 26 |
| $ | 34 |
|
| Royalties | $ | 4 |
| $ | 5 |
| $ | 5 |
| $ | 6 |
| $ | 52 |
| $ | 9 |
| $ | 8 |
| $ | 9 |
|
| Brine inflow expenses | $ | 38 |
| $ | 36 |
| $ | 39 |
| $ | 38 |
| $ | 37 |
| $ | 36 |
| $ | 39 |
| $ | 39 |
|
Freight (f) | $ | 66 |
| $ | 63 |
| $ | 69 |
| $ | 70 |
| $ | 69 |
| $ | 80 |
| $ | 71 |
| $ | 70 |
|
| | | | | | | | | |
| Operating Data | | | | | | | | |
Sales volumes ('000 tonnes)(d) | | | | | | | | |
| MOP | 2,086 |
| 1,862 |
| 1,832 |
| 2,038 |
| 2,071 |
| 2,044 |
| 1,551 |
| 2,169 |
|
Specialty(l) | 122 |
| 122 |
| 141 |
| 153 |
| 148 |
| 173 |
| 139 |
| 195 |
|
Total Finished Product(d) | 2,208 |
| 1,984 |
| 1,973 |
| 2,191 |
| 2,219 |
| 2,217 |
| 1,690 |
| 2,364 |
|
| | | | | | | | | |
Average finished product selling price (destination)(e) | $ | 194 |
| $ | 205 |
| $ | 210 |
| $ | 214 |
| $ | 214 |
| $ | 224 |
| $ | 239 |
| $ | 241 |
|
| | | | | | | | | |
Production Volumes ('000 tonnes) | | | | | | | | |
| Production Volume | 1,662 |
| 2,147 |
| 2,048 |
| 2,302 |
| 2,151 |
| 2,149 |
| 2,275 |
| 2,151 |
|
| Operating Rate | 63 | % | 82 | % | 83 | % | 93 | % | 87 | % | 87 | % | 87 | % | 82 | % |
| | | | | | | | | |
MOP cash costs of production including brine / production tonne(q) | $ | 94 |
| $ | 74 |
| $ | 86 |
| $ | 77 |
| $ | 101 |
| $ | 87 |
| $ | 86 |
| $ | 85 |
|
| MOP cash costs of brine management / production tonne | $ | 23 |
| $ | 17 |
| $ | 19 |
| $ | 17 |
| $ | 17 |
| $ | 17 |
| $ | 17 |
| $ | 18 |
|
| | | | | | | | | |
| Average CAD / USD | $ | 1.304 |
| $ | 1.335 |
| $ | 1.323 |
| $ | 1.345 |
| $ | 1.253 |
| $ | 1.270 |
| $ | 1.264 |
| $ | 1.291 |
|
The Mosaic Company - Mosaic Fertilizantes Segment
Selected Calendar Quarter Financial Information
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 |
Net Sales and Gross Margin (in millions, except per tonne) | | | | | | | | |
| Segment income statement | | | | | | | | |
| Net Sales | $ | 740 |
| $ | 521 |
| $ | 427 |
| $ | 467 |
| $ | 806 |
| $ | 520 |
| $ | 665 |
| $ | 713 |
|
| Cost of Goods Sold | 676 |
| 475 |
| 409 |
| 442 |
| 754 |
| 487 |
| 606 |
| 660 |
|
| Gross Margin | $ | 65 |
| $ | 46 |
| $ | 18 |
| $ | 25 |
| $ | 52 |
| $ | 32 |
| $ | 59 |
| $ | 53 |
|
| Notable Items Included in Gross Margin | — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
|
| Adjusted Gross Margin (excluding notables) | $ | 65 |
| $ | 46 |
| $ | 18 |
| $ | 25 |
| $ | 52 |
| $ | 32 |
| $ | 59 |
| $ | 53 |
|
| | | | | | | | | |
| SG&A | 17 |
| 16 |
| 15 |
| 17 |
| 18 |
| 22 |
| 25 |
| 29 |
|
| Other operating (income) expense | 1 |
| — |
| (1 | ) | (2 | ) | (3 | ) | 1 |
| 25 |
| 10 |
|
| | | | | | | | | |
| Operating Earnings | $ | 47 |
| $ | 30 |
| $ | 5 |
| $ | 11 |
| $ | 38 |
| $ | 10 |
| $ | 9 |
| $ | 14 |
|
| Plus: Depreciation, Depletion and Amortization | 4 |
| 4 |
| 4 |
| 4 |
| 4 |
| 4 |
| 37 |
| 37 |
|
| Plus: Foreign Exchange Gain (Loss) | (10 | ) | (5 | ) | (1 | ) | (18 | ) | 14 |
| (19 | ) | (5 | ) | (57 | ) |
| Plus: Other Income (Expense) | — |
| (2 | ) | (3 | ) | (1 | ) | 1 |
| (1 | ) | — |
| (1 | ) |
| Less: Earnings from Consolidated Noncontrolling Interests | 2 |
| 1 |
| 1 |
| — |
| 2 |
| 1 |
| — |
| — |
|
EBITDA(g) | $ | 40 |
| $ | 26 |
| $ | 5 |
| $ | (4 | ) | $ | 55 |
| $ | (6 | ) | $ | 41 |
| $ | (7 | ) |
| Notable Items Included in EBITDA | $ | (10 | ) | $ | (5 | ) | $ | (1 | ) | $ | (18 | ) | $ | 14 |
| $ | (19 | ) | $ | (21 | ) | $ | (63 | ) |
| Adjusted EBITDA (excluding notables) | $ | 50 |
| $ | 31 |
| $ | 5 |
| $ | 14 |
| $ | 40 |
| $ | 13 |
| $ | 62 |
| $ | 56 |
|
| | | | | | | | | |
| Capital expenditures | $ | 5 |
| $ | 7 |
| $ | 8 |
| $ | 5 |
| $ | 4 |
| $ | 16 |
| $ | 18 |
| $ | 29 |
|
| Gross Margin $ / tonne of finished product | $ | 34 |
| $ | 32 |
| $ | 16 |
| $ | 19 |
| $ | 24 |
| $ | 23 |
| $ | 37 |
| $ | 29 |
|
| Adjusted Gross Margin $ / tonne of finished product | $ | 34 |
| $ | 32 |
| $ | 16 |
| $ | 19 |
| $ | 24 |
| $ | 23 |
| $ | 37 |
| $ | 29 |
|
| Gross margin as a percent of sales | 9 | % | 9 | % | 4 | % | 5 | % | 6 | % | 6 | % | 9 | % | 7 | % |
| | | | | | | | | |
| Operating Data | | | | | | | | |
Sales volumes ('000 tonnes) | | | | | | | | |
| Phosphate produced in Brazil | 81 |
| 79 |
| 50 |
| 82 |
| 85 |
| 85 |
| 427 |
| 636 |
|
| Potash produced in Brazil | — |
| — |
| — |
| — |
| — |
| — |
| 99 |
| 66 |
|
| Purchased nutrients | 1,841 |
| 1,367 |
| 1,089 |
| 1,218 |
| 2,093 |
| 1,314 |
| 1,058 |
| 1,144 |
|
| Total Finished Product | 1,922 |
| 1,446 |
| 1,139 |
| 1,300 |
| 2,178 |
| 1,399 |
| 1,584 |
| 1,846 |
|
| | | | | | | | | |
Average finished product selling price (destination)(e) | $ | 385 |
| $ | 360 |
| $ | 375 |
| $ | 359 |
| $ | 370 |
| $ | 372 |
| $ | 420 |
| $ | 386 |
|
| | | | | | | | | |
Production Volumes ('000 tonnes) | | | | | | | | |
Total tonnes produced(r) | — |
| — |
| — |
| — |
| — |
| — |
| 987 |
| 822 |
|
| Operating Rate | — | % | — | % | — | % | — | % | — | % | — | % | 81 | % | 67 | % |
| | | | | | | | | |
Purchases ('000 tonnes) | | | | | | | | |
| DAP/MAP from Mosaic | 195 |
| 175 |
| 169 |
| 176 |
| 164 |
| 150 |
| 70 |
| 216 |
|
| MicroEssentials® from Mosaic | 293 |
| 120 |
| 314 |
| 365 |
| 178 |
| 55 |
| 182 |
| 392 |
|
| Potash from Mosaic/Canpotex | 435 |
| 284 |
| 408 |
| 868 |
| 451 |
| 346 |
| 389 |
| 770 |
|
| | | | | | | | | |
| Average BRL / USD | $ | 3.244 |
| $ | 3.298 |
| $ | 3.144 |
| $ | 3.215 |
| $ | 3.168 |
| $ | 3.308 |
| $ | 3.246 |
| $ | 3.604 |
|
The Mosaic Company - Corporate and Other Segment
Selected Calendar Quarter Financial Information
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 |
Net Sales and Gross Margin (in millions) | | | | | | | | |
| Segment income statement | | | | | | | | |
| Net Sales | $ | (146 | ) | $ | 39 |
| $ | (102 | ) | $ | (155 | ) | $ | (74 | ) | $ | 79 |
| $ | (1 | ) | $ | (130 | ) |
| Cost of Goods Sold | (154 | ) | 28 |
| (88 | ) | (136 | ) | (98 | ) | 78 |
| 15 |
| (86 | ) |
| Gross Margin (Loss) | $ | 8 |
| $ | 11 |
| $ | (15 | ) | $ | (19 | ) | $ | 23 |
| $ | 1 |
| $ | (16 | ) | $ | (44 | ) |
| Notable items Included in Gross Margin | (8 | ) | (4 | ) | (1 | ) | 3 |
| 2 |
| (17 | ) | (12 | ) | (34 | ) |
| Adjusted Gross Margin (Loss) (excluding notables) | $ | 16 |
| $ | 15 |
| $ | (14 | ) | $ | (22 | ) | $ | 21 |
| $ | 18 |
| $ | (4 | ) | $ | (10 | ) |
| | | | | | | | | |
| SG&A | (8 | ) | (1 | ) | 8 |
| 3 |
| 3 |
| 9 |
| 12 |
| 4 |
|
| Other operating (income) expense | 6 |
| 9 |
| 4 |
| 9 |
| 9 |
| 15 |
| 34 |
| 7 |
|
| | | | | | | | | |
| Operating Earnings (Loss) | $ | 9 |
| $ | 3 |
| $ | (27 | ) | $ | (31 | ) | $ | 11 |
| $ | (23 | ) | $ | (62 | ) | $ | (55 | ) |
| Plus: Depreciation, Depletion and Amortization | 8 |
| 6 |
| 5 |
| 6 |
| 5 |
| 7 |
| 5 |
| 5 |
|
| Plus: Foreign Exchange Gain (Loss) | (1 | ) | (2 | ) | 3 |
| 1 |
| (5 | ) | 5 |
| (1 | ) | — |
|
| Plus: Other Income (Expense) | (78 | ) | 7 |
| — |
| — |
| — |
| — |
| (2 | ) | 2 |
|
| Less: Earnings (Loss) from Consolidated Noncontrolling Interests | (3 | ) | (3 | ) | (3 | ) | 2 |
| — |
| (2 | ) | (1 | ) | (1 | ) |
EBITDA(g) | $ | (59 | ) | $ | 17 |
| $ | (16 | ) | $ | (26 | ) | $ | 11 |
| $ | (9 | ) | $ | (59 | ) | $ | (47 | ) |
| Notable Items Included in EBITDA | $ | (9 | ) | $ | (6 | ) | $ | 2 |
| $ | 4 |
| $ | (7 | ) | $ | (25 | ) | $ | (43 | ) | $ | (39 | ) |
| Adjusted EBITDA (excluding notables) | $ | (50 | ) | $ | 23 |
| $ | (18 | ) | $ | (30 | ) | $ | 18 |
| $ | 16 |
| $ | (16 | ) | $ | (8 | ) |
| | | | | | | | | |
| Elimination of profit in inventory income (loss) included in COGS | $ | 20 |
| $ | 12 |
| $ | (19 | ) | $ | (28 | ) | $ | 20 |
| $ | (18 | ) | $ | (8 | ) | $ | (21 | ) |
| Unrealized gain (loss) on derivatives included in COGS | $ | (8 | ) | $ | (4 | ) | $ | (1 | ) | $ | 3 |
| $ | 2 |
| $ | (17 | ) | $ | (12 | ) | $ | (34 | ) |
| | | | | | | | | |
| Operating Data | | | | | | | | |
| | | | | | | | | |
Sales volumes ('000 tonnes) | 290 |
| 463 |
| 196 |
| 319 |
| 333 |
| 497 |
| 266 |
| 348 |
|
Average finished product selling price (destination)(e) | $ | 372 |
| $ | 354 |
| $ | 305 |
| $ | 323 |
| $ | 373 |
| $ | 387 |
| $ | 333 |
| $ | 396 |
|
| | | | | | | | | |
Purchases ('000 tonnes) | | | | | | | | |
| DAP/MAP from Mosaic | 201 |
| 44 |
| — |
| 232 |
| 222 |
| 50 |
| — |
| 22 |
|
| MicroEssentials® from Mosaic | 10 |
| 53 |
| — |
| — |
| — |
| 68 |
| — |
| 8 |
|
| Potash from Mosaic/Canpotex | 38 |
| 81 |
| 242 |
| 86 |
| 147 |
| 198 |
| 240 |
| 108 |
|
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
Notable Items
|
| | | | | | | | | | | | | | |
| Q2 2018 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(s) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | | $ | (79 | ) | | $ | 18 |
| | $ | (0.16 | ) |
| Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | | (34 | ) | | 8 |
| | (0.07 | ) |
| Integration costs | Corporate and Other | Other operating income (expense) | | (5 | ) | | 1 |
| | (0.01 | ) |
| Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | | (6 | ) | | 1 |
| | (0.01 | ) |
| Refinement of inventory costing | Potash | Cost of goods sold | | (4 | ) | | 1 |
| | (0.01 | ) |
| Refinement of inventory costing | Phosphates | Cost of goods sold | | (6 | ) | | 1 |
| | (0.01 | ) |
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | | — |
| | 13 |
| | 0.04 |
|
| Sales tax refund | Phosphates | Other operating income (expense) | | 6 |
| | (1 | ) | | 0.01 |
|
| Total Notable Items | | | | $ | (128 | ) | | $ | 42 |
| | $ | (0.22 | ) |
|
| | | | | | | | | | | | | | |
| Q1 2018 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(s) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | | $ | (32 | ) | | $ | 9 |
| | $ | (0.06 | ) |
| Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | | (12 | ) | | 3 |
| | (0.02 | ) |
| Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | | (18 | ) | | 5 |
| | (0.03 | ) |
| Integration costs | Corporate and Other | Other operating income (expense) | | (8 | ) | | 2 |
| | (0.02 | ) |
| Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | | (16 | ) | | 5 |
| | (0.03 | ) |
| Refinement of inventory costing | Potash | Cost of goods sold | | (5 | ) | | 2 |
| | (0.01 | ) |
| Refinement of inventory costing | Phosphates | Cost of goods sold | | (15 | ) | | 4 |
| | (0.03 | ) |
| Realized loss on RCRA Trust securities | Phosphates | Other non-operating income (expense) | | (5 | ) | | 1 |
| | (0.01 | ) |
| Severance | Corporate and Other | Other operating income (expense) | | (4 | ) | | 1 |
| | (0.01 | ) |
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | | — |
| | 48 |
| | 0.13 |
|
| Total Notable Items | | | | $ | (115 | ) | | $ | 80 |
| | $ | (0.09 | ) |
|
| | | | | | | | | | | | | | |
| Q4 2017 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(s) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | | $ | (27 | ) | | $ | 2 |
| | $ | (0.07 | ) |
| Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | | (17 | ) | | 1 |
| | (0.05 | ) |
| Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | | (12 | ) | | — |
| | (0.04 | ) |
| Discrete tax items relating to changes in US tax laws | Consolidated | (Provision for) benefit from income taxes | | — |
| | (456 | ) | | (1.30 | ) |
| Other discrete tax items | Consolidated | (Provision for) benefit from income taxes | | — |
| | (7 | ) | | (0.02 | ) |
| Pre-issuance hedging gain (loss) | Consolidated | Interest expense | | (2 | ) | | — |
| | — |
|
| Restructuring | Phosphates | Other operating income (expense) | | (20 | ) | | 2 |
| | (0.05 | ) |
| ARO adjustment | Phosphates | Other operating income (expense) | | (11 | ) | | 1 |
| | (0.03 | ) |
| Asset write-off | Phosphates | Other operating income (expense) | | (8 | ) | | 1 |
| | (0.02 | ) |
| Resolution of royalty matter | Potash | Cost of goods sold | | — |
| | 2 |
| | 0.01 |
|
| Total Notable Items | | | | $ | (97 | ) | | $ | (454 | ) | | $ | (1.57 | ) |
|
| | | | | | | | | | | | | | |
| Q3 2017 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(s) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | | $ | 58 |
| | $ | — |
| | $ | 0.17 |
|
| Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | | 2 |
| | — |
| | 0.01 |
|
| Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | | (6 | ) | | — |
| | (0.02 | ) |
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | | — |
| | 5 |
| | 0.01 |
|
| Pre-issuance hedging gain (loss) | Consolidated | Interest expense | | (2 | ) | | — |
| | (0.01 | ) |
| Gain on sale of land | Phosphates | Other operating income (expense) | | 52 |
| | — |
| | 0.15 |
|
| Resolution of royalties with Saskatchewan government | Potash | Cost of goods sold | | (10 | ) | | (17 | ) | | (0.08 | ) |
| Asset write-off | Phosphates | Other operating income (expense) | | (3 | ) | | — |
| | (0.01 | ) |
| Total Notable Items | | | | $ | 91 |
| | $ | (12 | ) | | $ | 0.22 |
|
|
| | | | | | | | | | | | | | |
| Q2 2017 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(s) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain | Consolidated | Foreign currency transaction gain (loss) | | $ | 9 |
| | $ | 1 |
| | $ | 0.03 |
|
| Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | | 3 |
| | — |
| | 0.01 |
|
| Fees related to purchase of Vale assets | Corporate & Other | Other operating income (expense) | | (5 | ) | | — |
| | (0.02 | ) |
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | | — |
| | 16 |
| | 0.04 |
|
| Pre-issuance hedging loss | Consolidated | Interest Expense | | (8 | ) | | (1 | ) | | (0.02 | ) |
| Water loss expense | Phosphates | Other operating income (expense) | | (14 | ) | | (1 | ) | | (0.04 | ) |
| Miski Mayo | Phosphates | Equity in net earnings (loss) of nonconsolidated companies | | (5 | ) | | — |
| | (0.01 | ) |
| Total Notable Items | | | | $ | (20 | ) | | $ | 15 |
| | $ | (0.01 | ) |
|
| | | | | | | | | | | | | | |
| Q1 2017 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(s) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain | Consolidated | Foreign currency transaction gain (loss) | | $ | 9 |
| | $ | (1 | ) | | $ | 0.02 |
|
| Unrealized loss on derivatives | Corporate & Other | Cost of goods sold | | (1 | ) | | — |
| | — |
|
| Fees related to purchase of Vale assets | Corporate & Other | Other operating expense | | (3 | ) | | — |
| | (0.01 | ) |
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | | — |
| | (9 | ) | | (0.03 | ) |
| Liquidated damages for CF ammonia agreement | Phosphates | Other operating income (expense) | | (3 | ) | | — |
| | (0.01 | ) |
| Resolution of Canadian tax audit | Potash | Cost of goods sold | | (3 | ) | | — |
| | (0.01 | ) |
| Total Notable Items | | | | $ | (1 | ) | | $ | (10 | ) | | $ | (0.04 | ) |
|
| | | | | | | | | | | | | | |
| Q4 2016 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(s) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction (loss) gain | Consolidated | Foreign currency transaction (loss) gain | | $ | (30 | ) | | $ | (2 | ) | | $ | (0.09 | ) |
| Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | | (4 | ) | | — |
| | (0.01 | ) |
| Water loss expense | Phosphates | Other operating expenses | | (10 | ) | | (1 | ) | | (0.03 | ) |
| ARO adjustment | Phosphates | Other operating expenses | | (21 | ) | | (2 | ) | | (0.07 | ) |
| Depletion adjustment | Phosphates | Cost of goods sold | | 9 |
| | 1 |
| | 0.03 |
|
| Pension de-risking | Consolidated | Other operating expenses | | (6 | ) | | — |
| | (0.02 | ) |
| Costs related to purchase of Vale Fertilizantes Business | Corporate & Other | Other operating expenses | | (4 | ) | | — |
| | (0.01 | ) |
| Gain on sale of equity investment | Phosphates | Other expense | | 7 |
| | 1 |
| | 0.02 |
|
| Realized loss on RCRA Trust securities | Phosphates | Other expense | | (10 | ) | | (1 | ) | | (0.03 | ) |
| Discrete tax items | Consolidated | Benefit from income taxes | | — |
| | (7 | ) | | (0.02 | ) |
| Total Notable Items | | | | $ | (69 | ) | | $ | (11 | ) | | $ | (0.23 | ) |
|
| | | | | | | | | | | | | | |
| Q3 2016 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(s) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | | $ | (32 | ) | | $ | (1 | ) | | $ | (0.10 | ) |
| Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | | (8 | ) | | — |
| | (0.02 | ) |
| Discrete tax items | Consolidated | Provision for (benefit from) income taxes | | — |
| | 2 |
| | 0.01 |
|
| Asset reserve adjustment | Phosphates | Other operating income (expense) | | 4 |
| | — |
| | 0.01 |
|
| New Wales water loss incident | Phosphates | Other operating income (expense) | | (60 | ) | | (2 | ) | | (0.18 | ) |
| Restructuring | Consolidated | Other operating income (expense) | | (8 | ) | | — |
| | (0.02 | ) |
| Total Notable Items | | | | $ | (104 | ) | | $ | (1 | ) | | $ | (0.30 | ) |
Footnotes
| |
| (a) | Notable items impact on Earnings Per Share is calculated as notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares. Adjusted Diluted Net Earnings per Share is defined as diluted net earnings (loss) per share excluding the impact of notable items. See "Non-GAAP Reconciliations". |
| |
| (b) | The Company defines Consolidated EBITDA, a Non-GAAP measure, as consolidated Net Income (Loss) before net interest expense, depreciation, depletion and amortization and provision for/(benefit) from income taxes, as further described in "Non-GAAP Reconciliations". |
| |
| (c) | Includes elimination of intersegment sales. |
| |
| (d) | Finished product sales volumes include intersegment sales. |
| |
| (e) | Average price of all finished products sold by Potash, Phosphates, Mosaic Fertilizantes and India/China. |
| |
| (f) | Includes inbound freight, outbound freight and warehousing costs on K-Mag, animal feed and domestic MOP sales. |
| |
| (g) | The Company defines segment EBITDA as the related segment's operating earnings (loss) plus depreciation, depletion and amortization plus foreign exchange gain (loss) plus other income (expense) plus equity earnings (loss) less equity earnings (loss) from noncontrolling interests. EBITDA presented on a segment basis is a Non-GAAP financial measure. See "Non-GAAP Reconciliations." |
| |
| (h) | Includes crop nutrient dry concentrates and animal feed ingredients. |
| |
| (i) | Amounts are representative of our average ammonia costs in cost of goods sold. |
| |
| (j) | Amounts are representative of our average sulfur costs in cost of goods sold. |
| |
| (k) | Includes MicroEssentials and animal feed finished specialty products. |
| |
| (l) | Includes K-Mag and animal feed finished specialty products. |
| |
| (m) | Rock sales volumes include intersegment sales. |
| |
| (n) | Starting in Q1 2018, Plant City was excluded from operational capacity. |
| |
| (o) | Average selling price of all rock sold. |
| |
| (p) | Includes MicroEssentials, K-Mag and animal feed finished specialty products as a percentage of Phosphate and Potash segment sales tonnes. |
| |
| (q) | MOP production cash costs including brine are reflective of actual costs during the period. These costs are captured in inventory and are not necessarily reflective of costs included in costs of goods sold for the period. |
| |
| (r) | Includes Phosphate and Potash crop nutrients and animal feed ingredients. |
| |
| (s) | Tax impact is based on our expected annual effective tax rate. |
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), Mosaic has presented in this Selected Calendar Quarter Financial Information certain non-GAAP financial measures, or measures calculated based on non-GAAP financial measures, including: Adjusted Diluted Net Earnings Per Share, Consolidated EBITDA, Segment EBITDA, Adjusted EBITDA, Adjusted Gross Margin and Potash Cash COGS/production tonne. Generally, a non-GAAP financial measure is a supplemental numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Each of the non-GAAP financial measures we present is determined as described below.
The non-GAAP financial measures we present should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, because these non-GAAP measures, as presented, are not determined in accordance with GAAP, they are thus susceptible to varying interpretations and calculations and may not be comparable to other similarly titled measures of other companies.
Adjusted Diluted Net Earnings Per Share
Adjusted diluted net earnings per share is defined as diluted net earnings per share, excluding the impact of notable items. Notable items impact on diluted net earnings per share is calculated as notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares. Management believes that adjusted diluted net earnings per share provides securities analysts, investors and others, in addition to management, with useful supplemental information regarding our performance by excluding certain items that may not be indicative of or are unrelated to our core operating results. Management utilizes adjusted diluted net earnings per share in analyzing and assessing Mosaic’s overall performance, for financial and operating decision-making, and to forecast and plan for the future periods. Adjusted diluted net earnings per share also assists our management in comparing our and our competitors' operating results. Reconciliations of adjusted diluted net earnings per share to diluted net earnings per share for the periods presented are provided under “Consolidated Data” on the first page of this Selected Calendar Quarter Financial Information.
Consolidated EBITDA
Consolidated EBITDA is defined as consolidated Net Income (Loss) before net interest expense, depreciation, depletion and amortization and provision for/(benefit) from income taxes. EBITDA is a non-GAAP financial measure that we provide to assist securities analysts, investors, lenders and others in their comparisons of operational performance, valuation and debt capacity across companies with differing capital, tax and legal structures. Consolidated EBITDA should not be considered as an alternative to, or more meaningful than, consolidated Net Income (Loss) as a measure of operating performance. A reconciliation of Consolidated Net Income (Loss) to Consolidated EBITDA is provided below.
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| | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 |
| Consolidated Net Income (Loss) | $ | 39 |
| $ | 12 |
| $ | (1 | ) | $ | 97 |
| $ | 228 |
| $ | (431 | ) | $ | 42 |
| $ | 68 |
|
| Less: Consolidated Interest Expense, Net | (26 | ) | (27 | ) | (26 | ) | (36 | ) | (36 | ) | (40 | ) | (49 | ) | (45 | ) |
| Plus: Consolidated Depreciation, Depletion & Amortization | 173 |
| 165 |
| 159 |
| 166 |
| 169 |
| 172 |
| 217 |
| 217 |
|
| Plus: Consolidated Provision for (Benefit from) Income Taxes | (30 | ) | (5 | ) | 10 |
| (23 | ) | 18 |
| 490 |
| (50 | ) | 4 |
|
Consolidated EBITDA(b) | $ | 208 |
| $ | 199 |
| $ | 194 |
| $ | 276 |
| $ | 451 |
| $ | 271 |
| $ | 257 |
| $ | 333 |
|
Segment EBITDA
EBITDA presented at the segment level is defined as the related segment's operating earnings (loss) plus depreciation, depletion and amortization plus foreign exchange gain (loss) plus other income (expense) plus equity earnings (loss) less equity earnings (loss) from noncontrolling interests. We provide these non-GAAP financial measures because we believe they are relevant and useful to securities analysts, investors and others because they are part of our internal management reporting and planning process, and our management uses these measures to evaluate the operational performance and valuation of our segments. Management also uses these measures as a method of comparing segment, performance with that of its competitors. Segment EBITDA should not be considered as alternatives to, or more meaningful than, segment Operating Earnings (Loss) and segment Operating Earnings (Loss)/sales tonne, respectively, as measures of operating performance. Management believes
Operating Earnings (Loss) and segment Operating Earnings (Loss)/sales tonne, respectively, are the most directly comparable GAAP measures because we do not allocate taxes on a segment basis. Reconciliations of segment EBITDA to segment Operating Earnings (Loss) and segment Operating (Loss) Earnings/sales tonne, respectively, are provided as part of each segment's Selected Calendar Quarter Financial Information.
Adjusted EBITDA and Adjusted Gross Margin
Adjusted EBITDA is defined as EBITDA excluding the impact of notable items. Adjusted gross margin is defined as gross margin excluding the impact of notable items. Management believes the adjusted measures provides security analysts, investors, management & others with useful supplemental information regarding our performance by excluding certain items that may not be indicative of, or are unrelated to, our core operating results. Management utilizes adjusted EBITDA and adjusted gross margin in analyzing and assessing Mosaic's overall performance for financial and operating decision-making and to forecast and plan for future periods.
Potash Cash COGS/production tonne
For the Potash segment, Cash COGS/production tonne is defined as cost of goods sold per sales tonne less depreciation, depletion, amortization, Canadian royalties and resource taxes and freight included in revenue and cost of goods sold. Cash COGS/production tonne is provided to assist securities analysts, lenders and others in their comparisons of operational performance but should not be considered as an alternative to, or more meaningful than, Potash Cost of Goods Sold as a measure of operating performance. A reconciliation of Cash COGS/production tonne to Potash Cost of Goods Sold is provided below.
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| | | | | | | | | | | | | | | | | | | | | | | | |
| (in millions, except sales tonnes) | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 |
| Potash Cost of Goods Sold | $ | 388 |
| $ | 341 |
| $ | 345 |
| $ | 358 |
| $ | 376 |
| $ | 383 |
| $ | 301 |
| $ | 437 |
|
| Less: | | | | | | | | |
Freight included in revenue & cost of goods sold(f) | 66 |
| 63 |
| 69 |
| 70 |
| 69 |
| 80 |
| 71 |
| 70 |
|
| Canadian resource taxes | 14 |
| 31 |
| 23 |
| 33 |
| (5 | ) | 19 |
| 26 |
| 34 |
|
| Royalties | 4 |
| 5 |
| 5 |
| 6 |
| 52 |
| 9 |
| 8 |
| 9 |
|
| Potash Depreciation, Depletion & Amortization | 77 |
| 77 |
| 70 |
| 73 |
| 73 |
| 72 |
| 76 |
| 73 |
|
| Cash Cost of Goods Sold | $ | 227 |
| $ | 165 |
| $ | 177 |
| $ | 176 |
| $ | 187 |
| $ | 203 |
| $ | 120 |
| $ | 251 |
|
Sales tonnes (in thousands of mt) | 1,662 |
| 2,147 |
| 2,048 |
| 2,302 |
| 2,151 |
| 2,149 |
| 2,275 |
| 2,151 |
|
| Cash COGS/production tonne | $ | 94 |
| $ | 74 |
| $ | 86 |
| $ | 77 |
| $ | 101 |
| $ | 87 |
| $ | 86 |
| $ | 85 |
|
